Pershing Square Capital Management withstood big losses on two of its most prominent investments to post a 6% gain in the first quarter.
The New York-based hedge fund rose 2.5% last month, the New York Post reports.
That Pershing Square enjoyed any gains is impressive, given the dismal performance of its headline investments. Nutritional supplements company Herbalife, which Pershing Square founder William Ackman has called a pyramid scheme and which the hedge fund has a $1 billion short against, saw its shares surge 14% on the quarter. And retailer J.C. Penney, which Pershing Square owns 17% of, dropped 23% during the first three months of 2013.
Pershing Square still has a roughly $240 million paper profit on its Herbalife short, which it took at the end of last year. It has lost approximately twice as much over the life of its Penney investment.
The hedge fund was saved from a first-quarter disaster by holdings such as Canadian Pacific Railways, which rose 28% in the first quarter, and Procter & Gamble, which rose 13.5%.